passing the extension to \includesvg - damned if you do, damned if you don't

This works, provided you launch pdflatex with the -shell-escape option and you have inkscape on your system. This will call the (slow) conversion from SVG to PDF, with an accompanying TeX file. Later runs don't need the conversion, so they also work without the -shell-escape option.

So, if the file is test.tex you need

pdflatex -shell-escape test

(adjust for the method you run LaTeX on your system).

\documentclass{article}
\usepackage{svg}

\begin{document}

\includesvg[svgpath=./graphics/]{Steps}

\end{document}

The SVG file has been taken from https://dev.w3.org/SVG/tools/svgweb/samples/svg-files/